LONDON-The board of Freeport is weighing the possible sale of its three European retail outlet villages. "There is considerable interest from third parties in pan-European investment opportunities on which the board intends to capitalize," says Sean Collidge, executive chairman. "This may include selling down tranches of its existing assets while retaining management control. This would enable Freeport to continue its strategy of recycling receipts into further development as well as returning surplus funds to shareholders."

The board has appointed DTZ Debenham Tie Leung Ltd. to market the company's three mainland European assets, a company statement said. Over the past three years, Freeport has switched its focus largely from the development and operations of retail outlet villages in the UK to a mainland European concentration. More than 84,000 sm of UK space has been replaced by 114,300 sm in mainland Europe with a further 72,400 sm of development proposed over the next three years.

The assets likely to be put up for sale include a retail complex at Alcochete, near Lisbon. This, among the largest outlet centers in Europe, has been operating for nearly 16 months and has made a significant contribution in its first period of trading. Freeport Kungsbacka in Swede, also a potential candidate, has boasted a 12% increase in rental income over the past year. Freeport Excalibur, on the Austrian/Czech border, is also a potential sale target. Rental income there is up 40% over last year.

Freeport executives were unwilling to comment on what the asking price of the three European assets might be.